Gravitational pull

Follow Us Get the newsletter Even as nations seek to extricate themselves from China's economic grip, or at least limit their exposure, the reality of the global economy keeps pulling them back. Under U.S. President Donald Trump, there's been much talk of "decoupling" from China, finding ways to diversify supply chains and funding routes — and this pattern could continue under his successor, Joe Biden. Indeed, some Southeast Asian nations like Vietnam have benefited from companies moving their operations there. But it's unclear how much is really reversible. China's Belt and Road infrastructure network already snakes around large parts of the world, though central Asia, the Middle East and into Europe. Its maritime lane takes in ports across South Asia and beyond. Beijing has already done a lot of work binding other countries to its economic orbit. That's why decisions to ban Huawei from 5G networks are so fraught. Less developed nations still have few alternatives for funding and investment. Australia continues to pay a price for standing up to China for its more assertive behavior overseas and on human rights at home. Crippling tariffs have been imposed on wine exports, coal shipments stopped. For Australia's government, though, it has become a matter of principle over trade. In contrast, Beijing is offering a lifeline to the cash-strapped Iraqi administration. Its Covid-19 vaccine is being funneled quickly around the world to developing countries, in an effort to burnish its soft power. As this story explains, even the U.S. will find true decoupling difficult. While trade tensions simmer, measured by the bushel, the relationship has never been stronger. — Rosalind Mathieson President Xi Jinping proposes a toast during the welcome banquet for leaders attending the Belt and Road Forum in Beijing on April 26, 2019. Photographer: Nicolas Asfour/Pool/Getty Images Europe Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Ticking clock | U.K. Prime Minister Boris Johnson heads to Brussels for dinner with European Commission President Ursula von der Leyen, with a Brexit trade agreement hanging in the balance. If it goes well, negotiators could be back in a room hammering out details within hours. If it goes badly, officials on both sides fear the chances of a deal being ready before the end of December — when the Brexit transition period ends — will fade. Read how the lack of a deal could spell cross-border chaos. Filling jobs | Biden has chosen former Iowa Governor Tom Vilsack to reprise his Obama administration role as agriculture secretary and selected Ohio Representative Marcia Fudge to lead the Department of Housing and Urban Development, Jennifer Epstein, Mike Dorning and Jennifer Jacobs report. The Supreme Court rebuffed Trump's efforts to overturn the election results, rejecting a request by some Republican allies to nullify Biden's win in Pennsylvania. Status quo | The Trump administration has imposed sanctions at a record-shattering pace of about three times a day, targeting companies, individuals and oil tankers tied to Iran, North Korea, China, Venezuela and Russia. While Biden's team is promising a top-to-bottom review, don't expect a significant slowdown on his watch. Solution found | Polish Deputy Prime Minister Jaroslaw Gowin said Poland and Hungary have struck a compromise with Germany to unblock the European Union's $2.2 trillion budget and stimulus plan. The countries had threatened repeatedly to veto the package over their opposition to the funds being tied to democratic standards, with the breakthrough coming the day before a critical EU summit. Migrant crisis | Two hurricanes that wrecked swathes of Central America last month have increased the number of desperate migrants planning a risky journey to the U.S., in what could be an early test for Biden. He has pledged to abolish many of Trump's migration policies but, as Michael McDonald and Eric Martin explain, his advisers are keen not to signal the borders will be flung open. A resident takes a break from cleaning up in the coastal neighborhood of El Muelle after Hurricane Iota made landfall in Bilwi, Nicaragua, on Nov. 20. Photographer: Carlos Herrera/Bloomberg What to Watch U.S. Treasury Secretary Steven Mnuchin's surprise re-entry into talks on a pandemic-relief package opens a potential new path to a year-end deal. The U.K.'s National Health Service said people with a significant history of allergies shouldn't currently receive the Covid-19 vaccine from Pfizer and BioNTech, a day after Britain became the first western nation to launch an inoculation program. The U.K. government will drop tariffs the EU had imposed on $4 billion of U.S. goods, part of the long-running dispute over illegal aid to aircraft manufacturers Boeing and Airbus. Ghana's electoral commission delayed releasing the results of Monday's presidential vote until later today after opposition leader John Mahama accused the ruling party of rigging the ballot, a claim the government denies. And finally ... Five years after international leaders gave the World Trade Organization the task of ending excessive and illegal fishing, the deadline will not be met. As Bryce Baschuk reports, a global fisheries deal fell victim to issues ranging from the logistical problems of negotiating amid pandemic travel restrictions to growing distrust among WTO members. Fishing boats head out to sea from the port in Lianyungang, in China's eastern Jiangsu province. Photographer: STR/AFP via Getty Images     Like Balance of Power? Get unlimited access to Bloomberg.com, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022